LATE COMMERCIAL

Press, Volume LXXII, Issue 21938, 12 November 1936, Page 14

LATE COMMERCIAL

SHARLAND AND COMPANY,

LIMITED

A SATISFACTORY YEAR REPORTED (PHBSB iSSOCXATIO* TBUEOBAJI.) WELLINGTON, November 11. At the thirty-eighth annual meeting cf Sharland and Company, Ltd., at Wellington to-day, the chairman of directors (Mr A. E. Mabin), in moving the adoption of the : report and balance-sheet carrying with it the payment of a 'dividend of 2* per cent, on preference and ordinary shares, making 5 per cent, for the year, said the year had been quite a satisfactory one Turnover had shown a- pleasing increase. Stocks were up £2438, and book debts were down £954. bull provision had been made for all bad and doubtful debts. Bank and open liabilities were higher by £1662. Cash on deposit was higher fey £3500, ana stands at £7OOO. , Gross profit, Mr Mabin said, showed an increase of £1912. Expenses were higher by £B9B, and net profit was thus £lOl4 higher than last year. The result of the year’s operations was that, after providing the usual dividend of 5 per cent., income and land taxes’ depreciation,- and bad debts. there was left a sum of £2670. which increased the carry forward to” £8798. The sum written off for depreciation during the year was £1659. Ample provision had been made in this connexion. Shareholders had had to go along with a very moderate return on their investment during the depression, and it had been hoped by the directors that it would have been possible to increase the dividend on this occasion. However, extra provision had had to be made for graduated land tax and income tax, and this afaiounted to £I3OO more than if the taxes had been on the previous basis. This had taken from the shareholders the equivalent of 1 per cent. - their capital. The combined tax this year amounted to £SOOO. The graduated land tax and income tax had now become a serious incubus upon business, and it was hard to*conceive how the country was to be kept prosperous and contented under the heavy load of taxation.